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Separation and Business

Posted by spartacus 
Separation and Business
February 04, 2021 03:56PM
I am a self employed contractor...I'm a director of my own limited company. My spouse is also a director and holds 50% of the shares.

She claims we are now "legally" separated. She claims to have a certificate, but I'm not sure as we still reside in the same house, and while we don't generator eat or sleep together, she still cooks most meals, etc.

She is not going to give up shares in the business. I wouldn't expect so anyway.

I appreciate, she is entitled to 50% of the money in the business.

Is it worth closing my business now and starting a new one with just me as sole director and shareholder, or will that not make any difference until we have reached a finalised financial settlement?

Thanks.
Re: Separation and Business
February 05, 2021 05:11PM
Don't be so sure that your wife is entitled to 50% of the money from the business. If she is a director and shareholder in name only and the business is effectively you then upon divorce her shares would probably simply be transferred to you. Of course, if she is an equal shareholder you can't pay dividends to one shareholder and not another while that situations last but different directors can be paid different amounts.

There is no 'certificate' for separation so far as I am aware. Separation is a matter of fact. If your wife still cooks the meals you are not separated. Which is not to say that you should not do something about the situation if the marriage has broken down beyond repair.
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